Italian, Italian?

When you are waiting for a friend at a bar after a long week, and some guy wants to "get to know you." Where are you from he asks? (Insert foreign country/city/small town) after he smiles pretending to know where you are from he says, "Oh great! I'm talian!" And then you say: Italian as in the country or Italian as in you've never been to Italy, you don't speak the language, and you are fourth generation born and raised in New Jersey?
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